How To Terminate An Employee Fairly Checklist Included Nectar

Bonisiwe Shabane
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how to terminate an employee fairly checklist included nectar

Employment separations are an inevitable aspect of working life. Some 47.2% of the workforce parted ways with their employer in 2021, either voluntarily or due to discharge and layoffs. And those people in the dreaded "involuntary terminations" category will have faced a difficult conversation with their employer about the reasons for their exit. As it's probably a conversation they'll remember for the rest of their lives, this places a massive weight on the shoulders of HR professionals to choose their words with care! They must handle termination of employment discussions with the perfect blend of professionalism, sensitivity, and understanding—for the employee's sake and the company's reputation. This guide breaks down exactly how to terminate an employee swiftly and empathetically.

We'll walk you through the eight steps to employee dismissal and provide an employment termination checklist to stay on track! So, how do you know when an employer-employee relationship has run its course? Acceptable reasons to terminate an employee commonly fit into two buckets: Each employee has a cost associated with them. This includes their salary, paid time off, company benefits, and other associated costs. So, it might make financial sense to part ways with an employee if they're not meeting the expectations of their role or if their skill set is no longer required.

As a SHRM Member®, you’ll pave the path of your success with invaluable resources, world-class educational opportunities and premier events. Demonstrate your ability to apply HR principles to real-life situations. Stand out from among your HR peers with the skills obtained from a SHRM Seminar. Demonstrate targeted competence and enhance your HR credibility. Designed and delivered by HR experts to empower you with the knowledge and tools you need to drive lasting change in the workplace. Alison Roller is passionate about engaging and informative storytelling through writing and social media.

She has been writing since 2018 on a range of topics: politics, higher education, leadership, workplace culture, and diversity, equity, & inclusion. She holds a Master's of Communication with a focus on journalism from Syracuse University's Newhouse School. When she’s not working, you can find her hanging out with her cat, knitting, and scrolling TikTok. Making the decision to terminate an individual’s employment is never easy. Having a checklist to keep track of all the steps in the termination process can help you stay organized and ensure that nothing is missed in the process. And it can also help free up time for HR to focus on the next steps for the business and the employee.

Here’s a step-by-step employee termination checklist to ensure that the termination process goes as smoothly as possible. Before doing anything else, the first step should be ensuring that you comply with company policies as well as federal and state laws. Firing an employee represents one of the toughest duties business owners and HR managers must confront. Employee termination generates significant stress while draining emotional reserves and creating numerous legal complications. In March 2025 U.S. employers disclosed 275,240 job cuts indicating an alarming 205% growth from 2024.

The problem? Most companies are doing it wrong. Poor handling of terminations can expose your business to costly legal battles, harm your reputation and lower morale among current employees. Employee termination isn’t just about saying goodbye. Employee termination follows a lawful procedure that includes specific requirements that differ depending on the state. Fast, easy, accurate payroll and tax, so you can save time and money.

Manage labor costs and compliance with easy time & attendance tools. For advanced capabilities, workforce management adds optimized scheduling, labor forecasting/budgeting, attendance policy, leave case management and more. From recruitment to retirement, getting the very best out of your people. Employee benefits, flexible administration, business insurance, and retirement plans. See how our team of experienced professionals can provide ongoing support for HR, payroll, and more—allowing you to focus on other aspects of your business. Wow, check out what I just found!

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